Implemented in full

Amid the recent reports that key proposals of the Vickers report would be sidelined, members of the UK Government have said that it will be implemented in full.

It has been reported that the Business Secretary, Dr Vince Cable said that “proposed lenders should be forced to split their retail and investment banking arms to help prevent future bailouts will be backed by Chancellor George Osborne”.

The news article then casts doubt as to the usefulness of this noting, “the planned reforms estimated to cost the industry up to £7 billion, there are fears they will slow lending at a time when the economy is in danger of sliding into recession”. However, there is considerable disagreement as to the accuracy of this figure. Not only that but to “wait” to implement these direly needed reforms would be a disaster for future generations and imperil any future stability.

The article goes on to mention that “is expected to pledge to enact all primary and secondary legislation stemming from the report by the end of the current Parliament, with a white paper expected next year, according to newspaper reports. The reforms should be in place by 2019. The Chancellor has come under pressure to water down the proposals from bankers, who claim they are unnecessary and could lead to higher costs for customers”.

All proposed financial regulations should be enacted as a matter of urgency, especially with the euro on the brink of collapse. To wait would ruin any chance of regualtion at all, especially as the world economy is expected to be on an uptick by the time these current regulations are in place and as such there would be little or no appetite for them then, as it would “stifle growth”. Such lobbying pressure from bankers and others should be ignored, with many, though not all of the large UK banks now making a profit, it would not be unreasonable to ask them to pay for the regulations out of their own pockets. Or alternatively, the banks could reduce the bonus packages of their senior, and not so senior, staff.

Only when both of these have been implemented should governments consider looking into the fact that the accounts of citizens may have to face higher fees. Neoliberalism as we have known it has failed. It is time for a regulated market to take its place.